Evergrande Moment of Truth Arrives With Bond Payment Deadlines
- Embattled developer is due to pay interest on notes Thursday
- Concern over firm’s fate has sent junk bond yields surging
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China Evergrande Group bondholders are about to find out if the property giant’s liquidity crisis is as dire as it appears.
Interest payments on two Evergrande notes come due Thursday, a key test of whether the developer will continue meeting obligations to bondholders even as it falls behind on payments to banks, suppliers and holders of onshore investment products. Investors are pricing in a high likelihood of default, with one of the notes trading at less than 30% of face value.